In a significant move, collaboration software giant Smartsheet has agreed to be acquired by private equity firms Blackstone and Vista Equity Partners in an all-cash deal worth approximately $8.4 billion. Under the terms of the agreement, shareholders will receive a substantial 41% premium, amounting to $56.50 per share, based on the company’s average closing price over the past three months. This development comes after Smartsheet had been exploring potential acquisition opportunities for several months.
Since going public in 2018, Smartsheet has been focused on competing with other prominent software companies, such as Atlassian. According to CEO Mark Mader, “Our partnership with Blackstone and Vista will enable us to build on our momentum, ensuring Smartsheet remains an exceptional workplace where our employees can thrive and grow.”
Following the announcement, Smartsheet’s shares experienced a 6% surge. The deal includes a 45-day window, allowing the company to entertain alternative bids. Assuming no rival offers emerge, the transaction is expected to be finalized by January 2025, pending shareholder approval. Qatalyst served as Smartsheet’s advisor, while Goldman Sachs and Morgan Stanley advised the private equity firms involved.
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